a) Note that the CPI-based rate of inflation between 2022 and 2023 in the baseline scenario provided is 9.6%. Suppose, instead of rising from $2 to $2.50 between 2022 and 2023, the price of hamburgers rose to $3.50. What would be the rate of inflation? Instructions: Round your answer to one decimal place. %. b) Reset the table. Now, suppose instead of rising to $8 in 2023, the price of movie tickets rose to $9. What would be the rate of inflation? Instructions: Round your answer to one decimal place. % c) The impact of the additional $1 increase in the price of hamburgers versus the baseline has a (Click to select) impact on the CPI- based rate of inflation than an additional $1 increase in the price of movie tickets. This is because of the greater weight attributed to (Click to select) in the fixed basket of goods on which the CPI calculation is based.

a) Note that the CPI-based rate of inflation between 2022 and 2023 in the baseline scenario provided is 9.6%. Suppose, instead of rising from $2 to $2.50 between 2022 and 2023, the price of hamburgers rose to $3.50. What would be the rate of inflation? Instructions: Round your answer to one decimal place. %. b) Reset the table. Now, suppose instead of rising to $8 in 2023, the price of movie tickets rose to $9. What would be the rate of inflation? Instructions: Round your answer to one decimal place. % c) The impact of the additional $1 increase in the price of hamburgers versus the baseline has a (Click to select) impact on the CPI- based rate of inflation than an additional $1 increase in the price of movie tickets. This is because of the greater weight attributed to (Click to select) in the fixed basket of goods on which the CPI calculation is based.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 10CQ

See similar textbooks

Similar questions

"The cost of an average ticket to a baseball game in 1955 was $2.19. In 2010, the average price of a baseball ticket was $29.61. If the ticket price in 1955 rose at the same rate as inflation, what is the difference in prices between the 1955 ticket price (in 2010 dollars) and the actual ticket price in 2010? Enter your answer as a positive number. Refer to the instructions in the quiz for a link to the CPI table to answer this question."
Please correct answer and don't use hand rating
c) Now, suppose the inflation from 2012 to 2013 was 11.2%. Given that the CPI for this basket of goods was 155.3 in 2012, find the CPI in 2013. Round to 2 decimal places. The CPI of the basket of goods in 2013 was 172.69 . (d) Use your (rounded and correct) answer from part (c) to complete the following. The price of this market basket of recreational water equipment on Echo Island was $255 in 2009 (the base year). Then, the price of the same market basket in 2013 was $ (round to the nearest cent).
a) In 2015 (the base year), the representative consumer bought 20 cinema tickets at $12 each, and 1 laptop computer at a price of $500. In 2016, the price of cinema tickets rose to $15 each and the price of a laptop rose to $550. Calculate the inflation rate between 2015 and 2016. b) List the three types of biases of the consumer price index (CPI). If using the price index presented above, provide examples for how each of these three biases would apply to the measured level of inflation for the year 2020 (no calculations necessary).
What is the current inflation rate as measured by the Consumer Price Index? You can use either the February or March 2022 figure. Describe the pattern of the Consumer Price Index since the beginning of 2020. Describe the pattern of the CPI since 2010. (Hint: Utilize Trading Economics (Links to an external site.) or FRED (Links to an external site.) to get the data. Please note that the inflation rate is not the same thing as the level of the CPI. The inflation rate is measured as the percentage change in the level of the CPI during a period of time.
A) Inflation is the steady and widespread increase in prices. The inflation rate, measured by CPI, rose .1% in May (since April) and rose a total of 4% year-over-year (May 2022 to May 2023). Read the BLS report on the Consumer Price Index and identify an “item” or “all items” and begin to consider why the price increased. Do a news search or using (clear, logical, rational) reasoningexplain whether prices are increasing because demand increased or because supply decreased. Graph and explain your answer
not use ai please
Suppose we have the following consumer price index (CPI) data for a nation: Year CPI 2016 225.09 2017 216.48 2018 224.20 Calculate the inflation rate from 2017 to 2018. Answer this as a percentage and round your answer to two digits after the decimal without the percentage. ex. If you found the inflation rate to be 5.125%, answer 5.13. Be careful here. The table looks the same as the previous question but the numbers are different! Correct!
In Zimbabwe the rate of inflation hit 90 sextillion percent in 2009, with prices increasing tenfold every day. At that rate, how much would a $100 textbook cost one week later? Hint: Use the following equation to calculate future price: Future price = (current price) x (inflation rate)', where t is the number of days in the future. billion
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. In year one, the basket costs $9.00. In year two, the price of the same basket is $8.00. From year one to year two, there is (a. inflation, b. deflation) at an annual rate of ___ %. In year one, $72.00 will buy ____ baskets, and in year two, $72.00 will buy ____ baskets. This example illustrates that, as the price level falls, the value of money (a. rises, b. falls, c. remains the same).
Explain how the Consumer Price Index (CPI) is calculated and critically evaluate its merits as a measure of inflation (approx 250 words)
Assume the CPI for a particular country in 2017 was 150 and in 2018 it rose to 160. Calculate the inflation rate between these two years.Alternatively, assume that instead of the CPI rising to 160 that it had fallen to 140 instead. Calculate the inflation rate between these twoyears. What is the meaning of the number that you got in the second case? Explain carefully.